Monday, March 12, 2012

Temenos says Misys merger talks end

ZURICH (Reuters) - Swiss banking software company Temenos said on Monday discussions about an all-share merger with Misys had ended following two rival bids for the British company.

Just a week earlier, Temenos had won more time to prepare its offer for its banking software peer after the UK Takeover Panel extended its deadline by four weeks.

Misys said in a statement that the rivals had been unable to agree the final terms of a deal, and it remained in talks with the private equity groups Vista Equity Partners and a combination of CVC Capital Partners and ValueAct Capital about a possible cash offer.

In February, the Financial Times reported Vista was lining up a 360 pence per share bid, valuing the banking software supplier at about 1.2 billion pounds ($1.9 billion). Some analysts have questioned that number however.

The offer from Temenos valued Misys at about 918 million pounds, according to both companies share prices on March 5.

Misys and Temenos announced on February 3 they had begun talks and four days later said they had agreed on the key terms of the deal.

However, the talks triggered a rival approach for the British firm from specialist private equity company Vista Equity partners and a joint approach from ValueAct, Misys' largest shareholder, and private equity company CVC put the merger of the software groups in doubt.

Both Temenos and Misys have been hit by a sharp fall-off in client spending, triggering the move towards joining forces to cut costs and boost revenue.

After spiking higher after the original announcement, Temenos shares are now trading at below their level at the time of the original announcement. Misys shares are nearly 5 percent higher.

($1=0.6372 British pounds)

(Reporting by Martin de Sa'Pinto, additional reporting by Paul Sandle in London; Editing by Mike Nesbit)

Source: http://news.yahoo.com/temenos-says-misys-merger-talks-end-074604490.html

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